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Reversing entries

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The SEC (Securities and Exchange Commission) recently announced that they will now require that large corporations file financial statements after 10-years instead of 5 years. This change means that the SEC will be able to stop some of the companies financial frauds before they ever become a problem. One of the most common ways that corporations try to defraud their investors is to reverse entries. These are entries where the corporation makes a financial gain (by earning money) and then makes a negative entry (taking a loss) on the same date. This can easily be proven by looking at the profit and loss statements.

Last night I came across a post by the famous “Practical Econ” on a new investing technique he has dubbed “Backed by the technicals”. Supposedly this technique is used by traders, when a large price movement is expected in the short term, to help them get a better entry point. This technique works by taking the previous day’s high and low prices for a stock. Then a trader will use the current day’s price to reverse the entry point.

Home » Bookkeeping » Periodic inventory system

Sep 14, 2020
Bookkeeping by Adam Hill

They then apply this figure to whichever cost flow assumption the business chooses to use, whether FIFO, LIFO or the weighted average. During periods of inflation, LIFO shows the largest cost of goods sold of any of the costing methods because the newest costs charged to cost of goods sold are also the highest costs. Those who favor LIFO argue that its use leads to a better matching of costs and revenues than the other methods. When a company uses LIFO, the income statement reports both sales revenue and cost of goods sold in current dollars.

Find the right balance between demand and supply across your entire organization with the demand planning and distribution requirements planning features. FIFO means first-in, first-out and refers to the value that businesses assign to stock when the first items they put into inventory are the first ones sold. Products in the ending inventory are the ones the company purchased most recently and at the most recent price. In a periodic FIFO inventory system, companies apply FIFO by starting with a physical inventory. In this example, let’s say the physical inventory counted 590 units of their product at the end of the period, or Jan. 31.

A high gross profit is better than a low one for your small business. The gross profit formula — net sales minus cost of goods sold — is the same regardless of which inventory system a company uses.

What is the difference between a perpetual inventory system and a periodic inventory system?

Periodic system examples include accounting for beginning inventory and all purchases made during the period as credits. Companies do not record their unique sales during the period to debit but rather perform a physical count at the end and from this reconcile their accounts.

What Is Periodic Inventory?

A periodic inventory system is an accounting method in which the cost of goods sold is determined periodically, usually annually and typically not more frequently than quarterly. This differs from a perpetual inventory system in which the cost of goods sold is determined as necessary or in some cases continually. To illustrate, assume that the company in can identify the 20 units on hand at year-end as 10 units from the August 12 purchase and 10 units from the December 21 purchase.

Accountants do not update the general ledger account inventory when their company purchases goods to be resold. The accountant removes the balance to another account at the end of the year.

It amalgamates all information and places it in one consolidated and accessible place. Overall, this automated system is more accurate and accurate information can be very valuable to a business owner. It can assess if customers were responsive to discounts, their purchasing habits, and if they returned any items. Unlike periodic inventory systems, the perpetual module reduces the need for frequent, physical inventory counts.

However, the calculation of cost of goods sold in the periodic inventory system differs from that of other systems. What differentiates a periodic from a perpetual inventory management system, and which makes the most sense for your company? The most significant difficulty with a periodic inventory system is determining the value of inventory. The inventory accounting method most often used with a periodic inventory system is Last In/First Out (LIFO).

Net inventory purchases equals the total amount purchased minus any refunds or discounts you receive from suppliers. Gross profit is the money a business earns from sales after paying for the cost to make or buy its inventory, or products, but before paying operating expenses.

Conceptually, the method matches the cost to the physical flow of the inventory and eliminates the emphasis on the timing of the cost determination. Therefore, periodic and perpetual inventory procedures produce the same results for the specific identification method. A method of accounting for merchandise inventory in which the cost of the inventory sold is determined only at the end of an accounting period (i.e. periodic inventory method).

While the periodic method is acceptable for companies that have minimal inventory items or small businesses, those companies that plan to scale will need to implement a perpetual inventory system. Regardless of the type of inventory control process you choose, decision makers need the right tools in place so they can manage their inventory effectively. NetSuite offers a suite of native tools for tracking inventory in multiple locations, determining reorder points and managing safety stock and cycle counts.

The resulting gross margin is a better indicator of management ‘s ability to generate income than gross margin computed using FIFO, which may include substantial inventory (paper) profits. Under the perpetual system, there are continual updates to the cost of goods sold account as each sale is made. In the latter case, this means it can be difficult to obtain a precise cost of goods sold figure prior to the end of the accounting period.

The company computes the ending inventory as shown in; it subtracts the USD 181 ending inventory cost from the USD 690 cost of goods available for sale to obtain the USD 509 cost of goods sold. Note that you can also determine the cost of goods sold for the year by recording the cost of each unit sold. The USD 509 cost of goods sold is an expense on the income statement, and the USD 181 ending inventory is a current asset on the balance sheet. The specific identification costing method attaches cost to an identifiable unit of inventory. The method does not involve any assumptions about the flow of the costs as in the other inventory costing methods.

When Is a Periodic Inventory System Used?
In a periodic inventory system, a business updates its inventory and cost of goods sold accounts in its records only at the end of an accounting period.
At this time, a business physically counts its inventory and uses the information to calculate its cost of goods sold.

The periodic inventory system is ideal for smaller businesses that maintain minimum amounts of inventory. The physical inventory count is easy to complete, small businesses can estimate the cost of goods sold figures for temporary periods. A perpetual inventory system is superior to the older periodic inventory system because it allows for immediate tracking of sales and inventory levels for individual items, which helps to prevent stockouts.

How Does a Periodic Inventory System Work?

LIFO means last-in, first-out, and refers to the value that businesses assign to stock when the last items they put into inventory are the first ones sold. The products in the ending inventory are either leftover from the beginning inventory or those the company purchased earlier in the period. LIFO in periodic systems starts its calculations with a physical inventory. In this example, we also say that the physical inventory counted 590 units of their product at the end of the period, or Jan. 31.

Businesses that use this method do not keep up-to-date inventory records or calculate the “cost of goods sold” between statement dates. Under the perpetual system, there are continual updates to either the general ledger or inventory ledger as inventory-related transactions occur. Cost flow assumptions are inventory costing methods in a periodic system that businesses use to calculate COGS and ending inventory. Beginning inventory and purchases are the input that accountants use to calculate the cost of goods available for sale.

Periodic Inventory System:Is It the Right Choice?

Under LIFO it is assumed that the most recent purchases are the ones that are first used. The value of the ending inventory is based on the oldest costs for the materials still in inventory. A periodic inventory system only updates the ending inventory balance in the general ledger when a physical inventory count is conducted.

We use the same table (inventory card) for this example as in the periodic FIFO example. Under a periodic review inventory system, the accounting practices are different than with a perpetual review system. To calculate the amount at the end of the year for periodic inventory, the company performs a physical count of stock. Organizations use estimates for mid-year markers, such as monthly and quarterly reports.

It also gives business owners a better understanding of customer buying patterns and their purchasing behavior. A more accurate understanding of customer preferences can guide which items a business stocks and when they place them on the sales floor. If a company has several locations, a perpetual inventory system centralizes this management.

Effectively, the cost of goods sold includes such elements as direct labor and materials costs and direct factory overhead costs. With a real-time system updating constantly, there are many advantages to the business owner. It is a proactive way to prevent stock from running out as when stock is low it can be instantly identified and stock can be reordered.

What is periodic inventory system example?

A periodic inventory system is a form of inventory valuation where the inventory account is updated at the end of an accounting period rather than after every sale and purchase. The method allows a business to track its beginning inventory and ending inventory within an accounting period.

A perpetual inventory does not need to be adjusted manually by the company’s accountants, except to the extent it disagrees with the physical inventory count due to loss, breakage or theft. Applying LIFO on a perpetual basis during the accounting period, results in different ending inventory and cost of goods sold figures than applying LIFO only at year-end using periodic inventory procedure. For this reason, if LIFO is applied on a perpetual basis during the period, special inventory adjustments are sometimes necessary at year-end to take full advantage of using LIFO for tax purposes. Periodic stock management does not give any information about the cost of goods sold or ending inventory balances between physical counts. You must therefore make estimates which can result in mistakes and errors.

In a periodic inventory system, a business updates its inventory and cost of goods sold accounts in its records only at the end of an accounting period. At this time, a business physically counts its inventory and uses the information to calculate its cost of goods sold. The periodic system is generally used by small businesses with limited inventory. In a perpetual inventory system, a business updates these accounts every time it buys and sells inventory, which makes their balances readily available without an inventory count. Perpetual inventory is a method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Perpetual inventory provides a highly detailed view of changes in inventory with immediate reporting of the amount of inventory in stock, and accurately reflects the level of goods on hand. Within this system, a company makes no effort at keeping detailed inventory records of products on hand; rather, purchases of goods are recorded as a debit to the inventory database.

Since physical inventory counts are time-consuming, few companies do them more than once a quarter or year. In the meantime, the inventory account in the accounting system continues to show the cost of the inventory that was recorded as of the last physical inventory count. Properly managing inventory can make or break a business, and having insight into your stock is crucial to success.{“@context”:”https://schema.org”,”@type”:”FAQPage”,”mainEntity”:[{“@type”:”Question”,”name”:”What is a reversing entry?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:” A reversing entry is a transaction that reverses the direction of an existing position.”}},{“@type”:”Question”,”name”:”Why do we reverse entries?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:” We reverse entries because it is easier to read.”}},{“@type”:”Question”,”name”:”How do you reverse a journal entry?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:” To reverse a journal entry, you would need to make an adjustment to the original entry.”}}]}

Frequently Asked Questions

What is a reversing entry?

A reversing entry is a transaction that reverses the direction of an existing position.

Why do we reverse entries?

We reverse entries because it is easier to read.

How do you reverse a journal entry?

To reverse a journal entry, you would need to make an adjustment to the original entry.

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Enchanted Woods and Forest Slots: Exploring the Mystical Realm of Nature

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6 days ago

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November 23, 2023

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In the realm of online casino gaming, a genre taps into the enchanting allure of nature and woodland mysteries: Forest Slots and Enchanted Woods Slots. These slots transport players into the heart of lush forests, where mythical creatures, ancient trees, and hidden treasures await discovery – play it here.

In this article, we will delve into the captivating world of Forest Slots and Enchanted Woods Slots, exploring their captivating features, woodland themes, and their magical gaming experience.

Immersed in the Wonder of Nature with Forest Slots

Forest Slots and Enchanted Woods Slots represent a captivating subgenre within online slot games, drawing inspiration from forests’ lush beauty and mystical aura. They offer a fusion of natural aesthetics, woodland creatures, and the potential for substantial real-money rewards. These slots appeal to fans of nature and wildlife and players seeking an escape into a world of tranquility and enchantment.

Key Features of Forest Slots and Enchanted Woods Slots

Lush Woodland Aesthetics

The standout feature of Forest Slots and Enchanted Woods Slots is their ability to recreate the serene and mystical ambiance of the forest. These games often boast towering trees, moss-covered stones, and enchanting glades—the graphics and animations transport players to a world of natural wonders, creating an immersive gaming experience.

Iconic Forest Symbols

Forest Slots and Enchanted Woods Slots feature symbols emblematic of the woodland realm. Players can expect to encounter woodland creatures like deer and owls, ancient trees, magical toadstools, and the elusive fairies and sprites that inhabit these enchanted woods. These symbols add to the game’s visual allure and play a critical role in determining winning combinations and triggering bonus features.

Woodland Creatures and Mystical Beings

To enhance the forest experience, these slots often incorporate encounters with mythical creatures and mystical woodland beings. Players may interact with fairies, elves, unicorns, and other fantastical inhabitants of the enchanted woods. These interactions add an extra layer of enchantment and engagement to the gameplay, providing players with a sense of wonder and magic.

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Forest Magic Bonus Rounds

In Forest Slots and Enchanted Woods Slots, players often engage in bonus rounds that tap into the mystical energies of the forest. These may involve participating in magical ceremonies, uncovering hidden pathways, or seeking the blessings of ancient forest guardians. These bonus rounds immerse players in the enchanting world of the forest, intensifying the gaming experience.

Themes in Forest Slots and Enchanted Woods Slots

These slots come in a variety of themes, each offering a different woodland adventure:

Fairy Glades

These slots focus on the magical realms inhabited by fairies and sprites, where players can explore glades, seek hidden treasures, and receive the blessings of forest spirits.

Mystical Creatures

In these games, players encounter mythical creatures like unicorns, centaurs, and magical creatures as they explore the forest’s depths in search of hidden wonders.

Ancient Trees and Guardians

These slots revolve around the wisdom and magic of ancient trees, where players seek out the guidance and blessings of these wise woodland sentinels.

Woodland Treasures

In these games, players embark on quests to discover hidden treasures and uncover the riches that lie within the heart of the enchanted woods.

Winning Real Money in Forest Slots and Enchanted Woods Slots

While the immersive themes and woodland aesthetics are the main attractions, players can also win real money while enjoying Forest Slots and Enchanted Woods Slots. These games offer various opportunities to form winning combinations, trigger bonus rounds, and accumulate substantial payouts, much like traditional slots.

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Conclusion

Forest Slots and Enchanted Woods Slots offer a uniquely immersive experience within online casino gaming. Whether you’re a fan of magical glades, encounters with mystical creatures, seeking the wisdom of ancient trees, or embarking on quests for woodland treasures, there’s a Forest Slot or Enchanted Woods Slot that can transport you to the heart of nature’s mysteries. With enchanting visuals, iconic woodland symbols, and engaging gameplay, these slots provide a truly unforgettable gaming experience. So, step into the enchanted woods and let the magic of nature guide you on a journey of wonder and discovery!

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Acquiring Sweeps Coins in Sweeptastic for 2023

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6 days ago

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November 23, 2023

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 Introduction

Sweeptastic is a newly launched sweepstakes casino that is currently in the early stages of establishing itself in the industry. Although there are areas, such as its game library and user interface, that are still undergoing refinement, the casino shows potential, particularly with its attractive welcome offer and continuous promotions. Despite a somewhat limited range of games, Sweptastic offers a decent entry point for players looking to explore the world of sweepstakes casinos.

Legitimacy of Sweeptastic Casino

Assessing the legitimacy of an online gaming site involves subjective judgment, but there are signs and factors that can help determine the intention behind a platform.

One important consideration is the transparency of the owner company, and in the case of Sweeptastic, this information is readily available on the casino’s site – Heuston Gaming Limited with registration number 104624.

Additionally, Sweeptastic has taken steps to enhance transparency and player safety. They provide a page displaying the Return to Player (RTP) of all available games and have a Responsible Gaming page that discusses how players can have the best gaming experience while maintaining control over their habits.

With these measures, including comprehensive information and tools for self-control, Sweeptastic demonstrates a commitment to ensuring the safety and well-being of its players.

Currencies

Sweptastic has a straightforward system with two virtual currencies: Gold Coins and Sweepstakes Coins, also known as Lucky Coins.

Lucky Coins (Gold Coins)

In Sweptastic, Gold Coins go by the name Lucky Coins. These coins are exclusively for playing games for fun and hold no real-world value. While the casino generously provides them for free, you also have the option to purchase additional Lucky Coins. They serve as a useful tool for exploring games before committing your valuable Sweepstakes Coins.

Sweepstakes Coins

Critical to the sweepstakes casino experience, Sweepstakes Coins are the virtual currency that transforms your in-game winnings into real money. Sweptastic retains the original name, emphasizing that winnings in Sweepstakes Coins can be redeemed for actual cash. Notably, these coins cannot be bought; however, Sweeptastic offers them abundantly through various promotions or as a bonus when you purchase Lucky Coins.

Promotional Offers at Sweeptastic

Promotions at Sweeptastic are designed to set high standards, offering players ample opportunities to enjoy their favorite games and potentially win real money rewards without the need for any purchases. Let’s delve into the details of each promotional offer:

Signup Bonus

Sweeptastic stands out by providing one of the most generous free welcome bonuses in the sweepstakes casino realm – a whopping 27,777 Gold Coins + 10 Sweepstakes Coins.

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At the same time, the full offer requires account verification; merely registering grants you an initial reward of 10,000 Lucky Coins (Gold Coins).

Daily Login

Acknowledging active members, Sweeptastic adopts the common practice of a Daily Login Bonus but distinguishes itself with a substantial amount of freebies. Simply log in each day, and the casino automatically boosts your balance with 1,000 Lucky Coins.

Happy Hours

For early birds, Sweeptastic introduces Happy Hours, generously gifting 3,000 Lucky Coins every morning between 7 am and 10 am. This bonus is seamlessly added to your account upon login, requiring no additional steps or claims.

First Purchase Offer

While Sweeptastic lavishes players with substantial free coins, the extensive gaming catalog may lead to their quick depletion. In anticipation of this, the social casino presents two exclusive offers for your initial coin purchase:

  • $17.49 pack – 25,000 LC + 25 SC (30% off)
  • $29.49 pack – 45,000 LC + 45 SC (35% off)

Purchase Methods

Now that you’re acquainted with Sweeptastic’s virtual coins let’s explore the options available if you decide to make a purchase on this casino-style gaming platform. Sweeptastic offers six predefined Lucky Coin bundles, each accompanied by complimentary Sweepstakes Coins. You can make purchases using widely accepted bank cards like Visa, Mastercard, and American Express, among others. Additionally, popular online payment providers are supported, ensuring a seamless transaction experience based on our testing.

Redeeming Prizes

For many players, the most exciting aspect is whether Sweptastic truly pays out real cash prizes. The answer is a resounding yes, and the redemption process is notably faster compared to other sweepstakes casinos. You have various redemption options, including bank transfers, gift cards, and even merchandise if you prefer tangible rewards.

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It’s crucial to note that to complete the redemption process; you must verify your account through KYC (providing documents for identity, address, phone, and bank account verification), wager the Sweepstakes Coins at least once (as they are received as a bonus), and have a Sweepstakes Coins balance equivalent to at least $100.

Conclusion

Since its inception, Sweeptastic has set the standard for how things should be done in the sweepstakes casino world. Whether it’s bonuses, games, or player care, this social casino brand truly stands out.

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Enhancing User Engagement And App Discovery: The Impact of User-Friendly Interfaces in App Catalogs

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2 weeks ago

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November 14, 2023

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Mobile applications have become an integral part of our daily lives. From social networking to productivity tools, there is an app for everything. With millions of apps available across various platforms, app catalogs are crucial in helping users discover new applications. However, the success of these catalogs greatly depends on user experience, particularly the user-friendliness of their interfaces.

The Significance of User-Friendly Interfaces

User-friendly interfaces are essential elements of app catalogs as they directly influence how users interact with and explore the available apps. A well-designed and intuitive interface can significantly enhance the overall user experience. Here are some key factors that highlight the significance of user-friendly interfaces:

1.1 Navigational Ease

One of the primary benefits of a user-friendly interface is navigational ease. When users can easily browse through app categories, search for specific apps, and access relevant information, they are more likely to engage with the catalog for longer periods.

1.2 Visual Appeal

The visual appeal of an app catalog matters. An attractive and well-organized layout can captivate users and encourage them to explore further. A cluttered or confusing interface, on the other hand, can deter users from using the catalog.

1.3 User Feedback

User-friendly interfaces often include features for user feedback, such as ratings and reviews. This feedback helps users make informed decisions about which apps to download, enhancing their overall experience.

Comprehensive App Collection

APPiX360’s extensive app collection caters to a wide array of interests and needs. The platform regularly updates its offerings with the latest and most popular apps, ensuring users have access to the newest trends and tools. The importance of user reviews and ratings in aiding informed decisions is a testament to the platform’s user-centric approach. The platform’s commitment to ensuring safe downloads is exemplified through its stringent vetting process, which can be illustrated through the safe downloading of the Pin-up app.

Impact on User Engagement

User engagement is a crucial metric for app catalogs. It measures how actively users interact with the catalog, and user-friendly interfaces can have a profound impact on engagement levels:

2.1 Longer Time Spent

A user-friendly interface encourages users to explore more apps, leading to longer sessions within the catalog. When users find it easy to navigate, they are likely to spend more time searching for new apps and discovering content.

2.2 Higher Retention Rates

Apps with user-friendly interfaces tend to have higher retention rates. Users are more likely to return to the catalog regularly if they had a positive experience during their previous visits. This consistent engagement benefits both users and app developers.

2.3 Increased App Downloads

Improved user engagement often leads to an increase in app downloads. When users feel comfortable and confident while using the catalog, they are more likely to take the next step and download apps that pique their interest.

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Impact on App Discovery

App discovery is a critical aspect of app catalogs, as it directly affects an app’s success. User-friendly interfaces play a significant role in enhancing the app discovery process:

3.1 Effective Search and Filtering

User-friendly catalogs offer efficient search and filtering options. Users can easily narrow down their choices based on categories, keywords, or ratings. This simplifies the app discovery process and helps users find relevant apps more quickly.

3.2 Personalized Recommendations

Many app catalogs use user data to provide personalized app recommendations. A user-friendly interface makes it easier for catalogs to collect and analyze user preferences, leading to more accurate and appealing app suggestions.

3.3 Social Integration

User-friendly interfaces often incorporate social features, such as sharing and following. These features enable users to discover apps recommended by their friends or influencers, fostering a sense of community within the catalog.

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The Pin-Up App Download Experience

As we explore the impact of user-friendly interfaces, let’s take a closer look at the Pin-Up app download experience as an example. Pin-Up is an online casino and sports betting platform that offers a mobile app for users to enjoy their favorite games and place bets conveniently.

4.1 Navigational Simplicity

The Pin-Up app catalog boasts a user-friendly interface that simplifies the navigation process. Users can easily access different sections of the app, such as casino games, sports betting, and promotions, through a well-organized menu.

4.2 Visual Appeal

The catalog’s visual design is visually appealing, featuring vibrant colors and clear graphics. This visually engaging interface captures users’ attention and encourages them to explore the app further.

4.3 User Feedback

Pin-Up’s user-friendly interface incorporates user feedback in the form of reviews and ratings for games and sports events. This feedback helps users make informed decisions about what to play or bet on, enhancing their overall experience.

Conclusion

In conclusion, user-friendly interfaces are instrumental in shaping the success of app catalogs by positively impacting user engagement and app discovery. Navigational ease, visual appeal, and user feedback are key elements that contribute to a user-friendly experience. As demonstrated by the Pin-Up app download experience, a well-designed interface can enhance the overall user journey, leading to higher user engagement, increased app downloads, and improved app discovery. App catalogs that prioritize user-friendliness are more likely to thrive in the competitive digital landscape, benefiting both users and developers alike.

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